Beijing Office Market Report

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BEIJING ECONOMY Beijing’s economic prowess is supported by the fact that around 52 of the Fortune Global 500 companies have their headquarters located in the capital, including petroleum refiners China National Petroleum and Sinopec Group, Industrial & Commercial Bank of China, Agricultural Bank of China and China State Construction Engineering. The city is also home to over 100 of the largest companies in China. Beijing is the powerhouse of the Chinese economy. The city has a post-industrial economy that is dominated by the tertiary sector (services), followed by the secondary sector (manufacturing, construction) and the primary sector (agriculture, mining). Beijing’s service sector accounted for 80.6% of the city’s GDP in 2017. Its economy grew 6.7% year-on-year (YOY) in 2017, totaling 2.8 trillion yuan (about 436 billion U.S. dollars), accounting for about 3.38% of the country's total output. Financial services, information technology services, and scientific research and technical services, were the three biggest sectors, comprising 16.6%, 11.3%, and 10.2% of the GDP respectively. In the 2017 Global Financial Centres Index, Beijing was ranked as having the 16th most competitive financial center in the world and sixth most competitive in Asia. Beijing’s GDP growth was recorded at 6.7% in 2017, the region’s overall growth driven by financial services, information technology services, and scientific research and technical services Ranked 3rd strongest city in the world demonstrating economic clout (Cities of Opportunity Index 2016 by PwC) Home to 52 Fortune Global 500 companies - the most in the world 6th most competitive financial centre in Asia and 16th in the world (Global Financial Centres Index 2017) Known as the "Billionaire capital of the world" OFFICE MARKET 2018 4
BEIJING OFFICE MARKET OVERVIEW Beijing has been consistently acknowledged as a global business hub, primarily owing to its developed infrastructure. Its strengths in human capital and scientific research have helped in attracting large multinational companies to set up their headquarters here. Beijing holds a pivotal position as one of the key business epicentres in the heart of Asia. The city has been consistently acknowledged as a global business hub, primarily owing to its developed infrastructure and its status of being a political, cultural and international exchange centre of China. Its strengths in human capital and scientific research have helped in attracting large multinational companies to set up their headquarters here. Business Districts Beijing Central Business District (CBD) is the primary area for finance, media, and business services in the city and is located to the east of downtown, near the foreign embassies along the eastern Third Ring Road between Jianguomenwai and Chaoyangmenwai. The CBD is home to several important skyscraper office projects and enjoys the presence of a large number of Fortune 500 businesses in the financial services segment as well as companies from media, information technology, consulting and the service sector arena. Over 60% of the overseas-funded companies in Beijing are located in the CBD. Presently, the area is undergoing massive development and once it is completed the region is expected to be catapulted into national and global limelight. Besides the CBD, there are several other established office markets preferred by occupiers. At the center of the citywide development effort lies Beijing Financial Street in Xicheng District - a 3.36 million-sq.m. development that contains a diverse mix of commercial and residential buildings. The vibrant business district, built in time for the 2008 Olympic Games, is popularly known as China’s new “Wall Street” and is lined with headquarters of large state banks and insurance companies. The country's financial regulatory agencies, including the central bank, bank regulator, securities regulator and foreign exchange authority, are located in the Financial Street neighborhood. Another important office sub-market is the Zhongguancun region, China's silicon village in Haidian District northwest of the city, which is home to both established and start-up tech companies. Zhongguancuan is often referred to as "China's Silicon Valley" owing to its proliferation of technology companies and favorable climate for early stage funding as well as good performance in start-up output. Due to the proximity and involvement of China's two most prestigious universities, Peking University and Tsinghua University, along with the OFFICE MARKET 2018 5
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Beijing Office Market Report

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